Summary Report
Workforce Planning Hamilton’s (WPH) Labour Market Plan (LMP) is a community plan that identifies recent labour market developments and promotes action to address urgent workforce development priorities. In 2014 WPH conducted a thorough review of the local labour market that included over 75 employer interviews as well as consultations with community partners that established the current priorities for action. Our 2015 LMP is an update of this community plan. It documents Hamilton’s recent labour market conditions and reviews the priorities identified in 2014 to determine next steps in our action plan. Looking at current trends, it is becoming increasing clear that Hamilton has emerged from the recession of the late 2000s. There are many new construction projects completed or underway. From the new Light Rail Transit announcement earlier this year, to the increasing number of condo towers under construction in the core, as well as McMaster’s investment in the new Continuing Education Centre and the David Braley Health Sciences Centre also in the downtown, Hamilton’s economy continues to perform well. In fact, according to a Colliers International Report1 released earlier in 2015, Hamilton is the best place to invest for businesses. It has many key attributes such as affordable commercial properties and is recognized as having a well-educated labour force.
2015
Labour Market Plan A Multi-Year Plan for Labour Market Development in Hamilton
An ever-increasing number of job seeking clients are using Employment Services and Literacy and Basic Skills programs. The largest increases are over a three year period, where ES clients have grown by 41.1% and LBS clients have grown by 31.1%.
A recent report by Workforce Planning Hamilton, Putting the Puzzle Together: Skills Alignment in Hamilton’s Transforming Economy, shows that the skill levels of prevalent occupations are increasing. From 2001-2011 employment in occupations requiring postsecondary education increased over 10% in Hamilton. Close to two-thirds (60.6%) of labour demand in Hamilton requires a postsecondary level of education. Sectors showing the greatest evidence of skills mismatch include Manufacturing; Health Care and Social Assistance; Professional, Scientific and Technical Services; Finance Insurance, Real Estate, Leasing and Construction. Understanding employer needs is vital to the labour market planning process and WPH’s annual employer survey provides valuable information on the current labour market demand. • Hamilton employers have a positive outlook as almost half of all respondents see their organization growing and 87% plan on hiring in the next year. 92% hired at least one position in the past year. • 22% of employers said skills requirement Hamilton’s Labour Market at a Glance – 2014 (CMA) will increase by a significant extent in five Employment 383,700 Increase of 3.8% from the height of the years, and 60% said it would increase by a recession in 2009 moderate extent. Unemployment Rate 5.80% Down 2.7 percentage points from 2009 • The majority of employers find recruitment a somewhat challenging issue, and about a Participation Rate 64 Down 3.5% since 2009 third find it very challenging. Source: Statistics Canada, Labour Force Survey 1
Colliers International, Cities of Opportunity (August 2015).
Hamilton’s Current [Page 2] Labour Market Conditions Hamilton’s Current Labour Market Conditions 8.5%
Employment (Thousands)
500
7.6% 450
6.4% 5.8%
400 350
6.6%
6.6%
6.1%
23.7
23.9
34.2
31.4
26.3
26.8
25.8
370.3
369.8
369.1
375.1
376.6
374.8
383.7
2008
2009
2010
2011
2012
2013
2014
300 Employment
Unemployment
9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%
Unemployment Rate
Labour Force showing Employment Levels, Unemployment Levels and Unemployment Labour Force showing Employment Levels, Unemployment Levels and Unemployment Rates, Hamilton CMA, Annual Averages,CMA, 2008-2014 (Labour Force Survey) Rates, Hamilton Annual Averages, 2008-2014 (Labour Force Survey)
Trade, Healthcare and social assistance, and Manufacturing continue to lead in employment as they account for 40% of all people working.
Unemployment rate
Most employed industries, Hamilton CMA, Annual Share and 2009-2014 Change (Labour Force Survey) Most employed industries, Hamilton CMA, Annual Share and 2009-2014 Change (Labour Force Survey)
Industry
Employment 2014 Annual Employment 2014 Annual % of Total % of%Total Change Industry Average Average (Thousands) EmploymentsEmployments 2009-2014 (Thousands) 383.7 100% 4%
Total employed Trade 62.4 Total employed Health care and social assistance 47.5 Trade Manufacturing 46.8 Educational services 29.5 Health care and social assistance Professional, scientific and Manufacturing technical services 29.3 Construction 27.9 Educational services Accommodation and food services 25 Professional, scientific and technical services Finance, insurance, real estate andConstruction leasing 21.9 Business, building and other Accommodation and food services support services 19.3 Transportation and warehousing Finance, insurance, real estate and leasing19
Business, building and other support services
383.7 16.3%
-6.0% 100%
12.4% 62.4 12.2% 47.5 7.7%
-0.6% 16.3% -8.4% 18.5% 12.4%
46.8 7.6%
12.2% 45.8%
-8.4%
7.3%
15.8%
7.7%
18.5%
29.3 6.5%
7.6%3.3%
45.8%
27.9 5.7%
7.3% -17.0%
15.8%
5.0%
6.5% 22.9%
3.3%
21.9 5.0%
-4.5% 5.7%
-17.0%
19.3
5.0%
22.9%
29.5
25
Trade, Healthcare and social assistance, and Manufacturing continue to lead in employment as they Transportation and warehousing 19 5.0% account for 40% of all people working.
TOP
% Change 2009-2014 4% -6.0% -0.6%
-4.5%
Professional, scientific and technical services saw the largest growth over the last five years increasing by
48% Hamilton has an unemployment rate that is lower than Ontario (7.3%) and Canada’s (6.9%) rates.
competencies identified by employers for their employees
Professional, scientific and technical services saw the largest growth over the last five years increasing by 45.8%
5
13% | Work ethic, dedication, dependability and written) 12% | Self-motivated/ability to work with little or no supervision 11% | Problem solving, reasoning, creativity 10% | Technical
3 Hamilton has an unemployment rate that is lower than Ontario 13%and | Canada’s Communication (both oral (7.3%) (6.9%) rates.
The number of job postings fluctuates throughout the year but the unemployment rate and job postings appear to be counter cyclical to each other. The sharp decrease in job postings in late 2014 appears to be a cyclical trend that occurs at the end of every year. Job Postings by Skill Level, Hamilton, 2014 (Vicinity Data)
Job Postings by Skill Level, Hamilton, 2014 (Vicinity Data) 6000
Number of Job Postings
5000
5366
Close to
85%
3000 1824
2000
of businesses with employees in Hamilton have less than 20 people, and
1000
A: University Education
B: College or Vocational Education or Apprenticeship Training
C: Secondary School D: On‐the‐job and/or Occupation‐ Training or No Specific Training Formal Education Required
95%
The number of job postings by skill level shows that there are many opportunities for people in skill level C, secondary school education and/or occupation specific training. The greatest demand in Hamilton is for Skill Level B, college education or vocational education or apprenticeship training.
4
have less than 50 people.
[Page 3] Number of of Job Postings 2014 (Vicinity Data); Unemployment Rate, Hamilton, Number Postingsper perMonth, Month,Hamilton, Hamilton, 2014 (Vicinity Data); The majority of employers find recruitment a 2014 (Labour Force Survey) Unemployment Rate, Hamilton, 2014 (Labour Force Survey) somewhat challenging issue, but about a third 2400
7
2200
6.5
[Page 3]
find it very challenging. Compared to last year’s survey, the number of employers that found it very challenging has increased.
6
2000
In general, does your organization find recruitment a challenging issue?
5.5
1800
[Page(Vicinity 3] ton, 2014 Data); Unemployment Rate, Hamilton, 1600 ton, 2014 (Vicinity Data); Unemployment Rate, Hamilton, 1400
5 4.5
# of Job Postings Per Month (left Not at all axis) Unemployment Rate (right axis)
4 7 1200 7 3.5 6.5 1000 6.5 3 6 6 5.5 Very 5.5 challenging # of Job Postings Per Month (left 5 Postings Month axis) ## ofof JobJob Postings Per Per Month (left (left axis) 5 The number fluctuates throughout the year but the unemployment rate and job postings 4.5 of job postings axis) Unemployment Rate (right axis) Unemployment Rate (right appear to4.5 be counter cyclical to each other. The axis) sharp decrease in job postings in late 2014 appears to Unemployment Rate (right axis) 4 be a cyclical trend that occurs at the end of every year. 4 The number of job postings fluctuates throughout the year but the 3.5 unemployment rateLevel, and Hamilton, job postings be counter cyclical Job Postings by Skill 2014appear (VicinitytoData) 3.5 3 to each other. The sharp decrease in job postings in late 2014 3 be a cyclical trend that occurs at the end of every year. appears to 6000 5366 5080 4967 5000 Number opf Job Postings
32%
ughout the year but the4000 unemployment rate and job postings ughout the year but the unemployment rate andappears job postings . The sharp decrease in job postings in late 2014 to 3000 .f every The sharp decrease in job postings in late 2014 appears to year. f every year. 2000 (Vicinity Data) (Vicinity Data)
6
4967
4000
0
5080
The majority of businesses in Hamilton are in the small business category.
1000
1824
challlenging
10% Somewhat challenging
58%
Hamilton’s Labour Market Plan Update Hamilton’s Multi-Year Labour Market Priorities SOFT SKILLS DEVELOPMENT Identified need in building fundamental soft skills for new labour market entrants and those with barriers to employment.
DESIGNATED GROUPS ENGAGEMENT WITH THE LABOUR MARKET Designated groups (including youth, immigrants, persons with disabilities, visible minorities and Aboriginals) face specific and unique challenges to finding employment.
UNDERSTANDING INCREASING AND EVOLVING SKILLS REQUIREMENTS Technological advancement across all industries requires multi-skilled workers at all levels who are adaptable, flexible and willing to learn.
EXPLORING OPPORTUNITIES IN HAMILTON’S DIVERSIFYING ECONOMY Broaden job seekers’ awareness of the growth of opportunities of SMEs and different work environments (including part-time, contract and shift- work) through labour market information and other resources.
WPH is developing a research report that defines the soft skills, reviews best practices and identifies strategies used by local service providers. ABEA is researching specialized training being developed across the province. A strategy is under development that will provide greater information to employers on immigrant talent. WPH is developing an approach to engage youth in employment services.
Research best practices related to promoting workplace training and investment in training; develop a strategy for promotion of training.
Develop sector-based marketing strategies for small businesses and lesser-known companies to help make the connection to qualified job seekers.
WPH established key priorities in the fall of 2014 and has been working with partners to move a variety of initiatives forward. As part of the labour market plan update process labour market stakeholders came together to review the priorities and action plan established in 2014. They were provided with an opportunity to review the key priorities and, based on the evidence presented and their knowledge of the local labour market identify any new or emerging priorities. The community endorsed the established priorities and adjusted the action plan as necessary.
Business, Labour & Community: Planning for Prosperity For the full version of the plan, visit Workforce Planning Hamilton’s website.
www.workforceplanninghamilton.ca